Circle has become the first stablecoin issuer to secure regulatory approval under the European Union's Markets in Crypto-Assets (MiCA) framework.
This milestone was announced by Jeremy Allaire, Circle's co-founder and CEO, on July 1.
The approval ensures that Circle's stablecoins, USDC and EURC, are now fully compliant with the new regulations, providing assurance to investors about the stability and legality of their holdings.
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In addition to announcing the regulatory achievement, Allaire revealed that Circle has selected France as its European headquarters. He praised France's proactive approach to digital asset regulation and highlighted the company's productive collaboration with the French Prudential Supervision and Resolution Authority (ACPR).
Allaire also emphasized the historical importance of this regulatory development. The MiCA framework represents the most comprehensive set of regulations for digital assets, signifying the maturity and evolution of the asset class since its early days. He said:
Back then all of this was considered incredibly niche, the mainstream financial sector was hostile to all of it, and the entire concept of fiat digital currency did not really even exist outside of very early crypto circles. The concept of seeing major global laws that enshrined stablecoins into the financial system was inconceivable.
Circle's achievement as the first MiCA-licensed stablecoin issuer signifies a new era for digital assets in the European Union, setting a precedent for future regulatory advancements and adoption.
In other news, another stablecoin issuer, Tether, has recently unveiled a new platform called Alloy by Tether, introducing the aUSDT token, over-collateralized by Tether Gold (XAUt) and pegged to the US dollar.
